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A few media outlets including http://twitter.com/#!/TheNextWeb http://twitter.com/#!/TheNextWeb have claimed this means Zynga has a $1 Billion valuation. That'
by DevX101 15y ago
A few media outlets including http://twitter.com/#!/TheNextWeb http://twitter.com/#!/TheNextWeb have claimed this means Zynga has a $1 Billion valuation. That's not true. Zynga is RAISING $1 billion. Some of the stock will not be available on the IPO day.
- hugh3 15y agoSo... how much of the company are they going to sell? Or haven't they announced this yet either? A $1 billion valuation would seem awfully low, since last I heard they have multiple hundreds of millions (possibly half a billion) in revenue. I personally have concerns about the long-term sustainability of their business model, but I'd expect a valuation much higher than this. Personally I won't invest. Too evil for my tastes.
- 18pfsmt 15y agoWhile I don't know specifically how much equity they intend to sell, investment banks typically like to make their IPOs between $12-14/ share. Given their last VC round was funded by Morgan Stanley and T. Rowe Price [1], I would guess they will be shopping the deal among their investors to gauge interest, and then price the shares as they see fit. [1]http://www.crunchbase.com/company/zynga http://www.crunchbase.com/company/zynga